Does the Renters (Reform) Bill Affect Serviced Accommodation?
The UK government’s Renters (Reform) Bill is one of the most significant legislative changes to the private rental sector in decades. Designed to strengthen tenant rights and regulate the private rental market, the bill primarily targets landlords who let properties on Assured Shorthold Tenancies (ASTs). However, for landlords operating serviced accommodation and short-term rentals, there is uncertainty about whether the new rules will impact them.
This article will explore what the Renters (Reform) Bill entails, whether it affects serviced accommodation providers, and how short-term let landlords should prepare for possible future regulations.
What is the Renters (Reform) Bill?
The Renters (Reform) Bill, introduced in 2023, aims to make renting fairer, improve tenants’ rights, and regulate the rental market more strictly. The key elements of the bill include:
Abolition of Section 21 ‘No-Fault’ Evictions
Stronger Rent Increase Protections
A New Property Ombudsman & Landlord Portal
Easier Pet Ownership for Tenants
These measures will increase stability for tenants and make it harder for landlords to remove tenants without good reason.
However, the bill primarily applies to long-term rental properties let on Assured Shorthold Tenancies (ASTs). The key question for serviced accommodation operators is whether these changes will extend to short-term rentals.
Does the Renters (Reform) Bill Affect Serviced Accommodation?
The short answer is no—at least not directly.
Serviced accommodation providers do not typically operate under Assured Shorthold Tenancies (ASTs), which means the new rules do not apply to them. Instead, serviced accommodation is usually let under:
Licence Agreements (for stays under 90 days)
Holiday Let Agreements (for short-term guests)
Corporate Let Agreements (for businesses housing employees)
Because these types of arrangements are not classified as ASTs, they fall outside the scope of the Renters (Reform) Bill.
However, while serviced accommodation providers are not directly affected, there are potential indirect consequences and future regulatory changes that could impact the sector.
Key Areas of the Renters (Reform) Bill and Their Impact on Serviced Accommodation
1. The End of Section 21 Evictions (No-Fault Evictions)
One of the biggest changes in the bill is the abolition of Section 21 evictions, which means landlords can no longer evict tenants without a valid legal reason.
Impact on Serviced Accommodation:
No impact on serviced accommodation, as most short-term lets are not governed by ASTs.
Landlords who currently offer long-term lets under ASTs may switch to short-term lets to avoid new eviction restrictions.
Possible increased scrutiny from local authorities if too many landlords transition from long-term rentals to serviced accommodation.
2. Rent Increase Controls
The bill will introduce stricter controls on how and when landlords can increase rent, preventing excessive price hikes.
Impact on Serviced Accommodation:
No impact on short-term lets, as serviced accommodation pricing operates on a nightly or weekly basis rather than fixed AST agreements.
However, if stricter rent controls discourage landlords from offering long-term rentals, some may flood the short-term market, increasing competition.
3. New Landlord Ombudsman and Property Portal
The government plans to introduce a mandatory landlord registration system and a new ombudsman to regulate disputes between tenants and landlords.
Impact on Serviced Accommodation:
At present, it is unclear whether serviced accommodation providers will be required to register on this system.
If all landlords, including short-let operators, must register, this could introduce new compliance requirements for serviced accommodation providers.
4. Pets in Rental Properties
The bill allows tenants to request permission to keep pets, and landlords will be required to consider the request fairly.
Impact on Serviced Accommodation:
No impact on short-term lets, as holiday accommodation is not covered by these rules.
However, serviced accommodation providers may want to consider pet-friendly policies to cater to longer-term corporate stays or relocations.
Could Future Regulations Affect Serviced Accommodation?
Although the Renters (Reform) Bill does not directly regulate serviced accommodation, the growing popularity of short-term lets has led to increased scrutiny from local councils and the government.
Possible Future Regulations for Serviced Accommodation
1. Short-Term Let Licensing
The government has hinted at a national licensing scheme for short-term rentals.
Some areas, like London, already have a 90-day limit on short-term lets unless the landlord has planning permission.
A licensing scheme could introduce new registration and compliance requirements.
2. Council Tax and Business Rates Changes
Some councils have increased council tax or business rates for short-term rentals.
Future legislation could introduce higher taxes or levies for serviced accommodation providers.
3. Planning Permission for Short-Term Lets
Some areas are considering making it harder for landlords to convert properties into short-term lets.
If stricter rules are introduced, landlords may need to obtain planning permission to operate serviced accommodation.
4. Stricter Health and Safety Regulations
While serviced accommodation already adheres to fire safety and insurance requirements, new laws could be introduced requiring more stringent health and safety measures.
How Can Serviced Accommodation Operators Prepare?
While the Renters (Reform) Bill does not affect serviced accommodation today, the landscape for short-term lets is changing. Here are some ways to future-proof your business:
1. Stay Updated on Local Regulations
Keep track of licensing schemes, planning rules, and tax changes in your area.
Some councils may introduce local restrictions on short-term lets.
2. Consider Diversifying Your Portfolio
If future laws make short-term lets harder to operate, consider mixing short-term and medium-term lets.
Corporate lets and relocation accommodation may provide a stable income stream without the risks of holiday let restrictions.
3. Ensure Your Business is Fully Compliant
Even if you are not affected by the Renters (Reform) Bill, you should still follow best practices for health, safety, and guest management.
Keep records of fire safety compliance, insurance, and business rates.
4. Monitor Pricing and Demand
If more landlords move into short-term lets, competition will increase.
Use dynamic pricing tools to stay competitive in a changing market.
Serviced Accommodation is Safe for Now, But Stay Vigilant
The Renters (Reform) Bill does not affect serviced accommodation directly, as it mainly targets long-term rental properties let under ASTs. However, indirect consequences—such as landlords shifting to short-term lets and increased regulatory scrutiny—could impact the sector in the near future.
As government discussions around short-term let regulations continue, it is crucial for serviced accommodation operators to stay informed and prepared for any upcoming changes.
For now, if you operate serviced accommodation under licence agreements, holiday lets, or corporate lets, you are not bound by the Renters (Reform) Bill. However, keeping an eye on local planning rules, taxation policies, and potential licensing requirements will help you future-proof your business.
If you need expert guidance on navigating the short-term rental market, maximising occupancy rates, or adapting to future regulations, our serviced accommodation consultancy is here to help. Get in touch today to ensure your business remains compliant, profitable, and ahead of the competition.
